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Who cares about privacy? According to Coin Metrics, this is not relevant for crypto users

September 2, 2020

The vast majority of crypto transactions do not contain privacy tokens, and Most traders choose to move funds transparently instead of doing it privately.

According to the report on the state of the network from Coin Metrics, the cryptanalysis firm, dated September 1, the combined daily transactions of three privacy coins, Zcash (ZEC), Monero (XMR) and Grin (GRIN), was only equivalent to 6% of Bitcoin (BTC), although the coins mentioned above offered much more privacy.

“User apathy about privacy is probably the biggest shortcoming of current anonymous transaction systems,” the report said.

“Despite the great technological advances in data protection in cryptocurrencies The adoption of data protection functions and resources has been slow“.

Who cares about privacy? According to Coin Metrics, this is not relevant for crypto usersWho cares about privacy? According to Coin Metrics, this is not relevant for crypto users

Cryptocurrency traders may not use the privacy features of their tokens. ZEC contains trustless zero-knowledge-proof systems, also known as zk-SNARKs, that enable transactions that “do not reveal anything about who is making the transactions or what amounts are being exchanged”.. However, according to the report, less than 2% of ZEC transactions were “completely private” and protected.

Coin Metrics speculated that With continued adoption, cryptocurrencies would have to return to their “original privacy-oriented spirit” in order to survive. If not, the ideas of anonymous transaction systems could simply go away.

However, it is not always that easy to use privacy coins. The The Australian exchanges have started delisting privacy coins like Monero, relying on government regulation.

Bitcoin’s growing privacy through services like CoinJoin could be key to saving crypto privacy. CoinJoin with providers such as Wasabi Wallet and Whirlpool, the Samourai Wallet’s non-custody bitcoin mixer, has seen increased activity. Matt Odell from Whirlpoolstats reported on it In August, users set a new record for the number of Bitcoin mixes per month: 2,429 BTC, or nearly $ 30 million.

Monero and Grin each have unique privacy features. GRIN is an implementation of the Mimblewimble Protocol that uses sensitive transactions to evade transaction amounts and uses aggregated transactions to avoid native transaction inputs and outputs being linked.

XMR uses ring signatures that summarize the true coins of a crypto issuer with a range of lures, semi-automatically selected from other points on the blockchain. On August 6th, the token saw the largest increase in daily hashrate at 2.2 GH / s.

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